To check the block, you can magna flux it or have the machine shop do this for you. Also, was the head a new or used head or reconditioned? Is it warped and in need of shaving?
Perhaps, the new head gasket is leaking, even though it has been replaced.
I know it's a lot of work to get the Honda head gaskets to work right.
If the only symptom is water in the exhaust, maybe try some Bar's Leaks Cylinder Head Gasket Repair. It worked in my 1997 Cadillac Deville Limousine which has a Northstar engine. I had a leaky cylinder after having the system flushed out. Cadillac recommends installing a leak sealant of some sort to help to stop leaks due to inherent imperfections in the head gasket and sealing surfaces.
http://www.barsproducts.com/1111.htm
Be sure to buy the Bar's Leaks Head Gasket Fix for about $30 to try to seal the cylinder head gasket leak. I bought mine from Advance Auto Parts but other auto parts retailers carry it.
It doesn't require draining the system to install it. Just poured it in the radiator and it worked on my Cadillac.
Again, that link was the following:
http://www.barsproducts.com/1111.htm
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